Microsoft Jacks Xbox Prices Up to 50% in Europe—Second Hike in 18 Months

Microsoft has raised Xbox console prices across Europe and the UK by up to 50%, the second hike in 18 months, with the 1TB Xbox Series S jumping from €399.99 to €599.99 in the EU. The company blames an AI-driven memory crunch, citing memory and storage prices surging more than 2.5 times and expected to double again by fall 2027. U.S. prices rose less, with the 512GB Series S up 25% to $499.99, while European consumers pay the equivalent of roughly $575 for the entry-level console versus $500 in the U.S.

Microsoft has jacked up Xbox console prices across Europe and the UK by as much as 50%—the second round of hikes in 18 months—hitting consumers with markups that far outpace what American gamers are paying, all while the company blames an AI-driven memory crunch for the squeeze. The numbers are stark. In the EU, the 1TB Xbox Series S jumped from €399.99 to €599.99—a 50% increase. The 1TB Xbox Series X with a disc drive went from €599.99 to €799.99, up 33%. UK gamers fared no better: the 512GB Series S climbed from £299.99 to £429.99, a 43% bump. Even the cheapest Xbox now costs what the top-tier Series X did at launch. This is the Big Tech /tech/google-hikes-pixel-11-price-100-slashes-cameras-and-ram playbook in action: pass every cost on to the consumer, deliver the same aging hardware, and count on brand loyalty to keep the registers ringing. Microsoft confirmed the increases last month, saying memory and storage prices have surged more than 2.5 times and are expected to double again by fall 2027. "Unlike phones, computers, speakers, and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make," the company wrote in a blog post. Maybe so. But American gamers are catching a relative break. In the U.S., the 512GB Series S rose 25% to $499.99. The 1TB Series X disc edition went up about 23% to $799.99. Hot Hardware noted that currency conversions muddy the comparison, but the bottom line is clear: European consumers are bearing a disproportionately heavier load, with the entry-level Xbox costing the equivalent of roughly $575 across the pond versus $500 stateside. Fans aren't buying it. "At this point in the lifecycle you should have been able to get a Series S for like $99.99 not $499.99. That's laughably outrageous," one Reddit user wrote, as reported by Europe Says. Another quipped, "Never thought consoles would appreciate in value over time." One commenter acknowledged the cost pressures but questioned the business logic: "I understand why they had to do this, but they can't seriously expect any sales now for an already poorly selling console." The broader industry is running the same play. Nintendo raised the Switch 2 by $50 citing "various changes in the market environment." Sony has hiked the PlayStation 5 price twice in the past year. The driving force is what insiders are calling "RAMmageddon"—the AI boom is devouring memory and storage supply, and every device that uses those components is getting more expensive to build. New Xbox boss Asha Sharma offered a grim preview of what's coming, saying the next generation of consoles might not be "the most premium, high-performance" because "we've reached a point where it will be hard to imagine that mass audiences can afford thousands of dollars to spend on a console." Rumors point to both the PS6 and next-gen Xbox launching late next year—or possibly delayed to 2029. Microsoft is also embarking on what it calls a "100-day reset plan" to get its Xbox division back to growth. Whether that plan involves giving consumers a fair deal or simply managing the decline of a once-great gaming brand is the open question. The company that once competed on price and value is now asking gamers to pay premium dollars for aging hardware—and betting they'll have nowhere else to go.